Moodys accused of providing made-up ratings
Wednesday 23rd September, 2009
The Moody’s credit ratings agency has been accused by an ex-staff member of issuing inflated ratings.
The employee, Eric Kolchinsky, has accused Moody's Investor Service of issuing a high rating to a complex debt security in January, in spite of plans to downgrade assets backing the security.
The Wall Street Journal has reported on the accusation and US congressional investigators are now in possession of documents backing the accusations.
Kolchinsky has supposedly detailed other instances of inflated ratings issuance.
Moody's has declined to comment on the January rating figure which has come under investigation.
Wednesday 23rd September, 2009
The Moody’s credit ratings agency has been accused by an ex-staff member of issuing inflated ratings.
The employee, Eric Kolchinsky, has accused Moody's Investor Service of issuing a high rating to a complex debt security in January, in spite of plans to downgrade assets backing the security.
The Wall Street Journal has reported on the accusation and US congressional investigators are now in possession of documents backing the accusations.
Kolchinsky has supposedly detailed other instances of inflated ratings issuance.
Moody's has declined to comment on the January rating figure which has come under investigation.
